Asia Pacific Real Estate Investments Rise 12% in 2024
Real estate investments in the Asia Pacific market increased 12% year-on-year to reach USD 155.9 billion in 2024, according to Colliers’ new report – ‘Asia Pacific Investment Insights H2 2024’. This growth underscores the continued resilience of the region’s top nine markets – Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan.
According to the report, South Korea, Japan, and Mainland China together accounted for 59% of total USD 83.2 billion real estate investments in H2 2024. India, South Korea, Taiwan, and Australia, meanwhile saw significant investment growth, each recording more than 30% year-on-year increases during the period. Office and industrial & logistics remained key segments in H2 2024, driving around 60% of the total investments. Retail and hospitality segments too experienced a significant rebound, with retail investments increasing 31% year-on-year to USD 15.0 billion during H2 2024. Both Australia and South Korea saw inflows exceeding USD 3.0 billion in the retail segment, reflecting renewed investor confidence in asset classes.
Within the APAC region, India continued to exhibit strong momentum with H2 2024 witnessing 88% annual rise in investments at USD 3.0 billion. Office assets continued to draw majority of the investments at 47% share, followed by industrial & logistics at 27% share. Mumbai attracted almost half of the investments during H2 2024, primarily led by acquisition of office assets.
"Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22% rise in capital inflows at USD 6.5 billion. This momentum is expected to continue in 2025, driven by favorable economic growth prospects and optimistic investment sentiments. Moreover, the anticipated continuity in easing of monetary policy including further reduction in repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025. Diverse investment opportunities along with proactive government policies are likely to support robust capital deployment across core and non-core assets throughout 2025." said Badal Yagnik, Chief Executive Officer, Colliers India.
